Cyprus undertook a thorough review of its insurance legislation in 2002, in preparation for accession to the EU in 2004. The Law on Insurance Services and Other Related Issues of 2002 took effect on January 1st, 2003 and has since been updated to maintain full compliance with all EU directives. The law aims to protect policyholders’ interests, ensure confidence in and stability of the insurance market and achieve market transparency.
The Insurance Law covers local insurance companies, insurance companies incorporated in another EEA (EU together with Norway, Iceland and Lichtenstein) state and third-country (non-EEA) insurance companies. The requirements are broadly similar for all, except that certain exemptions are available for companies regulated in another EEA state.
Τhe Insurance Companies Control Service established under article 4 of the Insurance Law, is responsible for supervising the operations of insurance companies.